Adidas doesn’t know when to resume operations in Russia, CEO says

Adidas CEO Kasper Rorsted told CNBC on Wednesday that it is too early to know when the company will resume operations in Russia.

“I think it’s premature. The war has been going on for two weeks now and at this stage we are making the right decision at the moment… I think it is very difficult at this stage to make any dogmatic decision,” Rorsted said in an interview that aired on Final Call.

“We will deal with the situation as the world moves forward, but right now we are trying to deal with this situation immediately and correctly,” he added.

Earlier this week, the German sportswear company said that closing of their Russian stores and the suspension of online sales in response to Moscow’s invasion of Ukraine. Reuters reported that Adidas has about 500 stores in Russia. The company also suspended on partnership with the Russian Football Union March 1.

Adidas is among hundreds of companies that have suspended or reduced business operations in Russia in recent days, including Starbucks, McDonald’s and Apple.

Company informed a rosy outlook for 2022, released on Wednesday, with currency-neutral sales expected to rise by 11-13%, taking into account business risks in Russia and Ukraine. Rorsted said he is focused on supporting Ukraine while growing the company.

“I don’t want to sound cynical, but it’s the right balance between the two because Russia is about 2% of our income and we still need to take care of that and also make sure that we continue to develop 98% of income, which is global income. “, – he said.

Rorsted said Adidas has thousands of employees in Russia and the company continues to pay them. “But it’s also important that we look at this in a broader context. We need to protect our employees and mitigate the situation through donations and emergency assistance throughout the region, and especially our employees in Ukraine,” he said.

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